Cost Of Living In Vancouver Essay

“The benchmark price for a detached home in metro Vancouver has increased 18.9 per cent from the previous year and sits at 1.17 million dollars, according to the Real Estate Board of Greater Vancouver.” “On Vancouver’s west side, the Home Price Index rose 19.2 per cent over the past year to surpass 2.74 million dollars while surging 22.5 per cent to 1.16 million dollars on the east side.” These are just some of the quotations you can get from different news articles explaining the rise in price for homes in Vancouver. Due to and increasingly scarce housing market in Vancouver this had led to pressure on the price of houses to rise as well.

“Scarcity makes decisions costly and a markets conveniently put a numerical value on those costs. Its called price.” As the population in the Greater Vancouver Area increases the demand for houses also rise. Since the supply of houses is not going up as fast as the demand for houses the housing market must increase their price on their product. As prices of houses continue to rise in the Vancouver area residences will experience labor shortages, as the cost of living will be more expensive than their salaries. According to certain studies a single person living in Vancouver has to make around $18/hour

Scarcity and the supply and demand go hand in hand in this situation. There is a scarcity on the product people want to buy, houses. Factors such as population, location and features influence the buyer’s decision and willingness to live in a house. For example, as the population rises in Vancouver housing becomes more scarce, but if 75% of the buyers want to live by the ocean then housing is even more scarce, but if the remaining 25% of people want to live by the ocean and a school that makes the housing for that market more